Goldman Expects US Growth to Run Above Trend in 2026

Watch Goldman Expects US Growth to Run Above Trend in 2026 - Bloomberg on Dailymotion

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00:00What will the Fed do next? So, you know, we're expecting a hawkish cut from the Fed. That's,

00:06you know, nothing new in that. In fact, that's what the market's expecting. I think what's more

00:09important is to focus on the dots for next year and then any comments as it relates to the balance

00:16sheet, anything that's interpreted by the market as a liquidity injection in the system. So you

00:21could even with them being hawkish, you could still see risk asset continue to perform on the

00:26back of any announcement like that. Do you see, Alexandra, just the economy deteriorating,

00:30especially the labor market into 2026? I mean, we expect to see pockets of weakness and we have.

00:36And in fact, we're expecting Chair Powell to keep maximum optionality in front of next week's job

00:42data, which will be critical because they are still very data dependent. But holistically for the

00:49year, we're still expecting to see above trend growth, mainly driven by fiscal stimulus, as well

00:56as, you know, continued capex spend from the AI trade. But in terms of markets, you know, we're

01:02not expecting a linear upward trajectory as it relates to risk assets. In fact, we expect to see

01:08some volatility. Definitely. Across equities? Across equities. So definitely not calling, you know,

01:14a top. We still see, you know, room for continued performance, but the margin of error is a lot

01:21tighter given where valuations are. And then, you know, your previous guests were speaking to the

01:26global duration trade and how much rates are moving upwards. And we just think that there's more room

01:31for, you know, macro to be repriced, a higher dispersion of macro across the board.